The Saudi Arabian British Bank recorded a net profit of SR1.552 billion for the six months ended June 30, 2008 - up 24 per cent. The SABB's strategy of building long-term customer relationships supported by a broad range of financial products and services appears to be delivering the goods.
The strength of SABB's balance sheet has allowed it to respond to the increasing demand for funding within the Saudia Arabia as reflected by the 59.5 per cent growth in our loans and advances book over the last twelve months. This asset growth has more than offset the impact of falling rates. In addition, strong performance from credit cards, trade, mutual fund, treasury and IPO related businesses, together with a modest increase in brokerage income, has delivered well balanced income streams.
Customer deposits are up 36.7 per cent, however Loans and advances to customers of were up 59.5 per cent! The bank's investment portfolio was a bright spot, totaling SR30.1 billion, compared with SR16.4 billion a year ago. Provisions for bad debts are alos going in the right direction. In the first half of 2008 they reduced by SR4 million or 1.8 per cent.
The company also announced the formation of SABB Insurance Services Ltd which will provide comprehensive insurance solutions - A further step toward the bank's goal of becoming a leading provider of financial services in the Kingdom.